Retirees

Life events can leave a man, woman or couple in a new position of financial responsibility after relying on a steady salary for many years. We help these clients get comfortable in their new role while avoiding the expensive mistakes. These individuals are common targets for financial abuse. Having AOG as an advocate can prevent these individuals from becoming targets.

  CASE STUDY

Glen & Carrie

BACKGROUND

Glen practiced law as a litigation attorney for more than thirty years and his wife, Carrie, was a stay at home mom who managed their household including raising three very active children. Now, both Glen and Carrie enjoy traveling the world, spending summers with family at their vacation home in Montana and supporting their grandchildren in the pursuit of academic and musical passions. Glen and Carrie are in their 60s and are now living a very active life as “empty nesters”.

When Glen and Carrie first met with our team, they were at one of the most important inflection points life brings. Glen was contemplating retirement, and he and Carrie were trying to determine if they were financially prepared. At AOG, we have dubbed this transition point the “Work Optional Lifestyle”.

This is the point in life where one has options: 
  1. Stop working completely because earned income is no longer necessary to complete the Financial Plan, continue to work for the joy of one’s profession or
  2. Work part-time, or for a reduced wage at a startup, or for a non-profit as an adventure.
It’s about choice. One can solely rely on Retirement Assets to sustain an abundant lifestyle for the rest of one’s life, and still leave a legacy inheritance to children, grandchildren, and charitable endeavors. Glen and Carrie communicated their goals of maintaining their monthly income, continuing to give generously to charitable causes, and leaving an inheritance to their four children and eight grandchildren.

Throughout their lives, Glen and Carrie had been careful in their household budget and had accumulated modest savings over his career. However, with the challenges of providing for both undergraduate and graduate degrees for their three children and paying off their mortgage, they had not accumulated enough assets to go “Work Optional” and maintain the lifestyle they desired. Fortunately, Glen’s work at his firm provided a substantial exit payout. Further aided by advanced tax planning through AOG in concert with a very sophisticated Certified Public Accountant, they were thrilled to realize that their hard work combined with significant tax mitigation and the substantial income from the AOG “Endowment Model” would allow them to live their dreams and support their legacy goals.

AOG

ACTION PLAN

Develop Durable Income Stream from Portfolio - Glen and Carrie had many accounts with no clear purpose. We consolidated accounts where prudent, and developed a portfolio to support their future monthly income needs.
  • In utilizing the AOG Modified Endowment Model, we have put together a portfolio to support a 4% income stream.
  • Glen and Carrie now receive a monthly distribution from the portfolio to cover their expenses and lifestyle.
Donor Advised Fund - The year Glen and Carrie joined AOG, they had a short amount of time to employ several of our investment strategies that carry tax mitigation benefits and allow them to make meaningful decisions quickly. We worked closely with their CPA to apply our expertise during the tight decision-making process. Their ideal life includes not only enjoying a comfortable lifestyle and spending time traveling and with their extended family, but also “giving back” to important education endeavors and the less fortunate.
  • We worked with Glen and Carrie to set up a Donor Advised Fund (DAF) because they were already charitably minded and wanted to use their assets to make an impact on multiple charitable enterprises.
  • Glen and Carrie donated appreciated stock and assets into the DAF to fund their charitable intent over many years into the future.
Leaving a Legacy - Glen and Carrie have a comprehensive Estate Plan in place.
  • We worked with Glen and Carrie to align their assets with their Estate Plan.
  • Glen and Carrie have introduced us to their adult children. This type of family meeting can be critically important in case of emergency so that all financial, tax and legal matters are handled smoothly.
  • We review their Estate Planning Checklist on an annual basis to make sure that they are alerted to contact their attorney to incorporate tax and legal updates in a timely fashion.

 AOG

 WHERE ARE THEY NOW?

Since Glen and Carrie has become clients of AOG Wealth Management, they have lived comfortably in retirement and have continued to give from their Donor Advised Fund. Not only have they chose to “live to give” but they are advocates for using the Donor Advised Fund as a great tool to facilitate regular giving.

Glen and Carrie knew they were in a “work-optional” phase but didn’t have all the components in place to take the steps confidently. We have provided client care and solutions for Glen and Carrie to meet their goals and live their ideal life with the durable income stream provided through investments as part of the AOG Modified Endowment Model, tax efficiency with the Donor Advised Fund and holistic planning that is now multi-generational!
Share by: